Why Private Equity Lenders Need Fund Control
As debt financing for development proves to be an increasingly profitable market for lenders, the opportunity for borrowers to seek funding beyond traditional commercial banks has broadened–most often through private equity firms and individuals.
Our most collaborative relationships are with Private Lenders. Like QuickDraw, they are entrepreneurs and are exempt from FDIC regulations, enabling them to make informed and quick business decisions.
If you’re a private lender, fund control is one of the most secure ways to significantly reduce the risk and increase the profitability of making and administering construction loans. At QuickDraw, we act as the intermediary between borrower and lender, expertly evaluating construction budgets and carefully processing each loan draw ensuring that loan proceeds are accurately dispersed.
Fund Control Minimizes Risk
QuickDraw provides expert analysis and consulting before a project even begins, confirming the borrowers or general contractors licenses and credit history and the projects construction budget with the proper due diligence.
Capital loss risk is easily reduced with consistent and accurate information at various stages of a project, starting an analysis of a potential construction or bridge loan and detailed cost review of the budget.
Once the loan is recorded and a service agreement is executed, our company oversees inspection and fund control, managing the loan disbursement portion of the project at every step of the way. We perform onsite inspections and progress reports, record draw requests, check invoices, releases, proof of payments, all while providing superior and quick service to the borrower.
Fund Control Reduces Overhead Costs
By following our lender’s policies of the draw process and funding throughout the construction build cycle, QuickDraw actively works to reduce additional time spent reviewing documents by providing detailed and accurate completed draw packages. Our goal is to minimize the lender’s staff review time by noting key items that require attention, such as variances or material reallocations.
A Good Fund Control Company Will Increase Your Bottom Line
With over 60 years of combined experience in commercial, residential and industrial construction, QuickDraw’s team of licensed contractors and professionals provide a work product and process designed to increase our client’s bottom line.
Our commitment is to turn Draw requests within 5 business days or less. This deploys capital faster, providing our clients the ability to start accruing interest almost immediately. Additionally, this provides the Borrower with a well-capitalized project and subcontractors and vendors get paid quickly, ensuring continued forward construction progress.
By providing superior service and working closely together, Borrowers often return to Lenders with future projects, increasing repeat business and profitability
Private equity firms and individuals should rely on strategic, expert fund control companies for the best possible outcome. The benefits of using fund control companies like QuickDraw are not to be missed!
To find out more about how QuickDraw can protect the integrity and financial outlook for your private equity firm’s investments, contact us today!